Coca-Cola Is Everything: SCM, CRM, ERP, Social Media, You Name It

Date

Coca-Cola Is Everything: SCM, CRM, ERP, Social Media, You Name It

Why is standardization so important in supply chain management?

The process of standardization is meant to develop and implement technical standards. The process of standardization is close to the solution for coordination problems. Standardization is very important in case of supply chain management, where having the same technical implements and standard, will eventually reduce the costs and the linked expense which are directly or indirectly related to the supply chain activities. To remain intact and to be in competition, the bigger giants of the industry tend to have new and innovative solutions to supply chain management issues, which are very important to solve, those issues might linked with modal analysis, supply chain management, load planning, distribution network design, route planning etc. Thus in order to get fats supply and to outsource the production, one must have the standardization in the supply chain management. The ability to make the finished good faster can break a sale easily, thus the products availability in the market should be done on a very fast pace, so that the competitor could not grab the moment of truth. Thus the standardization is very important in the supply chain management, as it has a very prominent role to play in the moving goods from the manufacturer to the end consumer.

Coke is developing its own set of software services for bottlers to use. Do you think Coke charges the bottlers for these software services? Why or why not?

Coca-Cola, it's the renowned soft drink in the world. It takes years to establish itself in the marketing of carbonated drinks. The reason Coke is so successful is because, they have a strong edge over the convinced consumers, and the suppliers, and this is because of their strong brand identity that invades the mind of the consumer. Thus Coke has always strived to be on the top in every step, be it is a product innovation or any back end software innovation.

The ERP system that has been generated and created by Coke will help both the suppliers of the bottles and Coke itself in the inventory management system. The goal in created this system actually is to create a standardized business and technology platform across all the coke bottlers. The phrase in the case depicts it very clearly that by standardization the operational work could be much easier and faster, and would reduce the extra supply chain expenses.

However Coke should not charge the bottlers for the software, as the innovation has been done by Coke themselves for their own betterment. The bottlers were working prior to the software's even, but in collaboration with coke, they are adopting it just to give them a better product.

How is My Coke Rewards an example of a switching cost? How can a switching cost not have a monetary penalty associated with it?

These days the power of social media has done, what could not be ...